14 Mar 2007drilling progress report● Neutral
Beach weekly report: Santos-operated Moomba-177 (Santos 67%) reached 2,371 m TD and was cased and suspended for future deepening by a specialised rig. Epsilon-11 is drilling at 1,890 m. No new results.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
12 Mar 2007drilling spud● Neutral
Third-party Mosaic announcement: Downlands South-1 in PL 119 spudded 11 March, targeting 1,927 m. Santos holds 14.87% of the permit now, falling to 12.18% after the Ausam farm-in stage. P50 potential is 2.3 BCF gas and 0.73 million barrels oil.
9 Mar 2007drilling progress report▲ Good
Third-party Drillsearch update: at Tintaburra (Santos 89% operator), Mulberry 28 (about 9 m net oil pay) was cased as a future producer. Mulberry 30 reached 1,377 m with weak shows; Mulberry 45 is coring. Cumulative 94 wells since February 2006.
8 Mar 2007drilling progress report● Neutral
Third-party Magellan report: Santos-operated Muthero-5 at Nockatunga (Santos 61.006%) was cased and suspended as a future oil producer; Muthero-6 is drilling at 792 m. Beach's Telowie-1 was plugged and abandoned at 1,384 m.
7 Mar 2007drilling progress report● Neutral
Beach weekly report: Santos-operated Dullingari-59 was cased and suspended as a future oil producer, and Moomba-177 is drilling at 1,813 m. Beach's Telowie-1 was plugged and abandoned at 1,384 m. Tipton-26 suspended.
5 Mar 2007joint venture update▲ Good
AWE announced a A$19m, 700 sq km 3D seismic survey starting in May 2007 in VIC/P 44, a permit operated by Santos (50%). The survey adjoins the earlier survey over the Casino, Henry and Martha fields, and adds to A$40m already committed to drill Netherby-1 and Pecten East-1 at the end of 2007.
2 Mar 2007drilling progress report● Neutral
Third-party Drillsearch update: at Tintaburra (Santos 89% operator), Mulberry 27 (about 7 m net oil pay) and Mulberry 41 (DST recovered oil) were cased as future producers. Mulberry 28 and 45 are next.
1 Mar 2007drilling progress report● Neutral
Third-party Magellan report: Santos-operated Muthero-5 at Nockatunga (Santos 61.006%) reached 1,446 m TD with oil shows in the Murta and Birkhead, with logging next. Beach's Telowie-1 is drilling ahead.
28 Feb 2007drilling progress report● Neutral
Beach weekly report: Santos-operated Coonaberry-2, Dullingari-59 and Fly Lake-22 had production casing run, with Coonaberry-2 and Fly Lake-22 rigs released. Beach's Telowie-1 is drilling at 1,306 m. No new results.
23 Feb 2007remuneration report● Neutral
Santos said Managing Director John Ellice-Flint's existing superannuation arrangements are retained and the share loan arrangements approved at the 2006 AGM were not implemented. This follows a board review of superannuation tax changes. Other terms remain as approved.
22 Feb 2007annual report● Neutral
Santos filed its Appendix 4E preliminary final report for 2006: revenue up 12.3% to $2,798.1m and profit after tax down 15.6% to $643.4m. The US operations are classed as discontinued, given the intention to sell them. Repeats the results release.
22 Feb 2007annual report▲ GoodMajor
Santos reported 2006 underlying profit up 7% to a record $683m, reported profit $643m, production up 9% to 61.0 mmboe, and a 20c final dividend (40c for the year). 2P reserves are 819 mmboe, and 2007 capex is cut to $1,180m with 14 wildcats.
22 Feb 2007investor presentation● Neutral
Santos's 2006 results presentation repeats the announced figures: production 61.0 mmboe, underlying profit $683m, 2P reserves 819 mmboe and contingent resources over 2.2 billion boe. Banjar Panji is described as uncertain in financial impact, with Santos's interest at 18%.
22 Feb 2007farm in farm out agreement▲ GoodMajor
Third-party Sundance announcement: Santos can earn into three Cooper Basin tenements in Queensland (ATP 636P, 820P, 661P) and become operator. Santos funds about A$3m of seismic and a well in each of two tenements to reach 60%. The permits are not yet granted.
22 Feb 2007drilling progress report● Neutral
Third-party Drillsearch update: at Tintaburra (Santos 89% operator), Mulberry 26 (about 6 m net oil pay) and Mulberry 35 (about 5 m) were cased as future producers. The upper Birkhead test at Mulberry 35 recovered no oil.
21 Feb 2007drilling progress report● Neutral
Beach weekly report: Tunkalilla-1 (Beach-operated) plugged and abandoned at 1,422 m. Santos-operated Coonaberry-2 reached 2,833 m TD; Dullingari-59 at 1,828 m TD; Fly Lake-22 drilling in basement at 2,939 m. No new results.
21 Feb 2007business combination▼ BadMajor
Santos said the ACCC decision means the first condition of its 15 February QGC offer will not be met by the 5 March deadline, so it does not intend to proceed. The QGC bid ends, leaving the AGL deal as QGC's alternative.
21 Feb 2007business combination● Neutral
QGC's chairman told shareholders the ACCC decision leaves the AGL proposal as the only one capable of acceptance, with a vote on 2 March 2007. QGC expects a 2P reserves upgrade of at least 125 PJ, taking it to at least 866 PJ.
20 Feb 2007regulatory community update▼ BadMajor
The ACCC said it will oppose Santos's proposed QGC acquisition, finding that even with the undertakings (30% of NewCo, 100 PJ gas access) it would likely substantially lessen southern Queensland wholesale gas competition. This undermines the 15 February offer's key condition.
20 Feb 2007other● Neutral
Third-party QGC chairman's letter: the board will not recommend Santos's improved offer until ACCC approval and still backs AGL. QGC expects a 2P reserves upgrade of at least 125 PJ. Mostly repeats the 15 February response.
19 Feb 2007director officer appointment● Neutral
Company Secretary W. J. Glanville resigned on 19 February 2007; James Baulderstone, appointed days earlier, continues as Company Secretary.
15 Feb 2007drilling progress report▲ Good
Third-party Drillsearch update: at Tintaburra (Santos 89% operator), Endeavour 25 was cased as an oil producer. Mulberry 35 showed good oil in cores and will be tested.
15 Feb 2007director officer appointment● Neutral
Santos notified that Kenneth Borda became a director and James Baulderstone Company Secretary, both effective 14 February 2007. Details are in the separate releases.
15 Feb 2007business combination● Neutral
QGC says Santos's improved offer looks attractive but cannot be accepted until ACCC approval, and has impractical conditions on ending the AGL deal. The board keeps recommending AGL for now; Deloitte will review. This version misstated Santos's investment as $46m and was replaced.
15 Feb 2007drilling progress report● Neutral
Third-party Magellan report: Muthero-7 (Nockatunga, Santos 61.006% operator) was cased as a Murta oil producer, and Muthero-4 is drilling. Tunkalilla-1 is operated by Beach, not Santos.
15 Feb 2007business combination▲ GoodMajor
Santos lodged a formal offer for QGC of at least $1.80 a share (about $960m): $1.30 cash plus one New QGC share valued at 50c or more. It lifts the gas put option from 60 to 100 PJ and is open to 5 March, subject to conditions.
15 Feb 2007resource reserve update▲ Good
Third-party Nexus report: an independent audit puts Longtom (Nexus 100%) at 435 PJ gas and 5.2 million barrels of condensate. Reserves of 350 PJ are expected to match gas contracted to Santos, with first gas in 2H 2008 via Santos's Patricia Baleen plant.
15 Feb 2007director officer appointment▲ Good
Santos appointed Kenneth Borda, 54, to its board from 14 February 2007. He is Deutsche Bank's CEO for the Middle East and North Africa, with Asia-Pacific and Australian senior roles previously.
15 Feb 2007director officer appointment● Neutral
Santos appointed James Baulderstone, 40, as General Counsel and Company Secretary. He was previously at BlueScope Steel and Mayne Group, with experience in mergers and acquisitions and competition law.
15 Feb 2007admin correction● Neutral
QGC replaced its earlier response to Santos's improved offer. The Santos investment in New QGC is corrected to about $40m, and wording now says the terms initially appear superior to AGL's. Board still recommends AGL.